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Opportunities to write stories like this one do not come along every day, so when an AIM listed stock like Plethora Solutions (LSE:PLE) rises to the occasion by leading the FTSE 250 with a 30% increase to 11.75, we should take a long, hard look to see what is going on and how long the dramatic rise can sustain itself.
Just in case you are unfamiliar with Plethora, it is a small, highly-specialized pharmaceutical company based in Oxfordshire. It is so specialized that we have to be cautious regarding the terminology that we use to describe both it and the reason for its rising to the top of the FTSE 250 mast today. While I will use euphemisms to describe the matter, inquiring minds may wish to read the company report directly. It’s not likely that you will find any additional information there, but it is more explicit.
When I say that the company is highly specialized, I mean that it highly focused on its one and only product. The reason for the 30% increase in valuation today is that the company announced that it is on the verge of releasing that product commercially – although the report did include a caveat against premature speculation as “it is not possible to determine with accuracy the timing of completing” licensing agreements for PSD 502.
Allow me to try to delicately described what PSD 502 does. Let’s go back in time to Sir Francis Drake. During training exercises, he discovers problems with the cannons on roughly 30% of Her Majesty’s ships. They prime and load just fine, but they fire prematurely, resulting in, shall we say, a less than satisfying experience, leaving the crew embarrassed and the queen frustrated. Continuing our allegory, a knight in shining armor comes riding out of Oxfordshire with a solution. That solution is PSD 502. To Drake’s amazement, a few sprays of PSD 502 on the cannon barrels before firing prevents premature explosion (PE). No more embarrassment. No more frustration.
Just in case you have completely missed the point, here’s some background that may help. Prior to the cannon problem, Drake had another problem getting his sail past half mast. Another white knight, Sir Pfizer, solved that problem with a little blue pill. The half mast problem wasn’t cured, but he was able to get it up three times a week. The only problem was that sometimes it stayed at full mast position for more than four hours, in which case he was required to bring the ship to port for immediate attention.
It’s hard to believe, with all the problems we face today, that Squire Plethora is focusing on the singular issue of misfiring cannons. Perhaps Plethora is hoping the Sir Pfizer (NYSE:PFE) will select him as his personal squire. Just imagine what they could do together to improve jousting poles.
